After five months of uncertainty, Austria’s three leading centrist parties have formed a new government. The far-right Freedom Party (FPÖ), which gained the most votes in the recent election, has been left out of the coalition. The deal comes after prolonged negotiations following the parliamentary elections.

A New Government Framework

The three parties that agreed to form the government are the center-right People’s Party (ÖVP), the Social Democrats (SPÖ), and the liberal Neos. Together, they have created a 200-page policy framework. The main goals of the coalition include improving Austria’s economy and addressing the growing budget deficit.

Christian Stocker, leader of the ÖVP, is set to become Austria’s next chancellor. He announced the coalition deal on Thursday. Stocker emphasized that reaching the agreement required a lot of work from all parties involved. This deal was not easy to achieve. The first attempt at forming a coalition earlier this year collapsed, leading to extended talks.

Failed Talks with the FPÖ

This agreement comes after the FPÖ’s strong performance in the election. The FPÖ won nearly 29% of the vote, making it the leading party. After the election, the ÖVP tried to form a centrist coalition. However, when those talks failed, the ÖVP turned to negotiations with the FPÖ.

Unfortunately, the talks with the far-right party also fell apart. One of the main reasons for this was disagreements over key issues, including control of the interior and finance ministries. The FPÖ insisted on controlling both, but the ÖVP refused. Had these negotiations succeeded, Austria would have had its first far-right-led government since World War II. FPÖ leader Herbert Kickl had proposed hardline policies, such as deporting large numbers of immigrants and cutting aid to Ukraine.

Urgent Call for Action from the President

President Alexander Van der Bellen urged the centrist parties to finalize a deal. He expressed concern that Austria had been without a functioning government for too long. This was the longest period without a government in modern Austrian history. With the new coalition agreement now in place, the country’s future leadership is taking shape. Ministerial appointments are set to be announced on Friday.

Key Policies of the New Coalition

The newly formed government faces several pressing issues. Austria’s economy is struggling, and migration has become a growing concern. Additionally, the war in Ukraine is affecting the country’s foreign policy.

Christian Stocker, who has been a politician for many years, took over as leader of the ÖVP after Karl Nehammer resigned earlier this year. Stocker acknowledged that the coalition talks had been difficult, especially given the challenges Austria faces.

The coalition’s policy framework includes proposals to tighten asylum laws. One of the main proposals is the creation of “return centers” for asylum seekers who have been rejected. The government is also considering freezing asylum applications if the number of applicants becomes too high. Another controversial proposal is a constitutional ban on headscarves.

Despite these measures, the government remains committed to strengthening Austria’s relationship with the European Union. The EU remains an important priority for the country’s future policies.

A Slim Majority in Parliament

In Austria’s parliament, the ÖVP and SPÖ have previously governed together. However, in this new government, they hold a slim majority. With only 92 seats out of 183, the two parties needed to bring in the Neos party to strengthen their position. The Neos party adds 18 more seats to the coalition, which improves their chances of passing key legislation.

Before the agreement can become official, it must be approved by the leadership of both the ÖVP and the SPÖ. In addition, two-thirds of Neos members must vote in favor of the deal during a convention scheduled for Sunday.

What Lies Ahead for the Coalition?

Political analyst Thomas Hofer believes that the new coalition will likely stay together. However, he warns that the parties will face major challenges in the future. Support for centrist parties has been declining. The ÖVP’s support fell from 26% in September to just 19% in recent polls. Meanwhile, the FPÖ has gained ground, reaching nearly 35% in recent polls.

Herbert Kickl, leader of the FPÖ, has been critical of the new government. He called it a “coalition of losers” and has already started calling for early elections. The FPÖ’s growing popularity will be a challenge for the new coalition as they move forward.

A Divided Austria

Austria is facing political tensions as the new government takes shape. Issues like migration, economic problems, and Austria’s role in European and global politics are all central to the political debate. The new government will need to address these issues carefully, balancing the needs of the country with the demands of their voters.

With the FPÖ growing stronger, future elections could see a shift in Austria’s political landscape. The rise of the far-right could pose a threat to the centrist coalition in the years to come. For now, the centrist parties must focus on implementing their policies while keeping their slim majority intact.

For more updates on Austria’s political situation, visit Wallstreet Storys.